Broward Judge Watson under scrutiny in 2004 insurance settlement

July 29, 2013|By Rafael Olmeda, Sun Sentinel

Broward Circuit Judge Laura Marie Watson is under fire for the way she and her colleagues handled the settlement of a slew of lawsuits against a car insurance company while she was in private practice.

Watson, who was elected to her first term last year, is being formally charged by the Judicial Qualifications Commission, which polices conduct by judges, although the allegations against Watson concern matters that took place years before she became a judge.

Watson represented health care providers who were suing Progressive Insurance in 2002 for non-payment of personal injury protection claims. She and other lawyers represented 440 doctors who had 2,500 claims against Progressive, according to the commission.

At the same time, other doctors were suing Progressive for operating in bad faith. Lawyers representing those doctors pooled their resources with the lawyers suing over unpaid claims. But when it came time to resolve the case in 2004, the claims lawyers, including Watson, secretly settled the cases with Progressive for $14.5 million, according to the commission.

Watson's firm was paid more than $3 million, of which $361,470.30 went to her clients.

The lawyers in the bad faith cases balked, complaining that they and their clients were effectively cut out of the settlement.

After years of disputes over the settlement, the Florida Bar began investigating the matter last year. But the investigation into whether Watson's conduct violated Bar rules was stalled when she became a judge. The Bar investigation found probable cause that rules were broken, but the Bar lost jurisdiction to handle the case once Watson donned judicial robes.

The Judicial Qualifications Commission can determine whether the conduct was improper and serious enough to warrant Watson's removal from the bench. If she is removed, the Bar will be able to pick up its investigation where it left off.